Theresa May: “the government wants people to be able to manage their own (universal credit) budgets”

Yet again, the vulnerable suffer. Due to successive governments many now in need have been ill-educated, ill-nourished and under stress because they could not find work. In similar circumstances Mrs May and few of her colleagues would be managing their budgets well.

The introduction of universally paying housing benefit direct to landlord (stopped in 2008) was extremely helpful to those not able (or willing) to budget. It has been retained under universal credit and actually adds to the problems of landlords and tenants alike.

Quoting from a letter circulated by GAP Property during PMQs, Jeremy Corbyn said: “Will the prime minister pause universal credit so it can be fixed? Or does she think it is right to put thousands of families through Christmas in the trauma of knowing they are about to be evicted because they are in rent arrears because of universal credit?”

GAP Property said the introduction of universal credit would affect the vast majority of its tenants and it needed to take action to avoid a slew of rent arrears, which could put it out of business.

The company’s owner, Guy Piggott, said the letter was not intended to be threatening and he was pleased it had been highlighted by Corbyn at Prime Minister’s Questions on Wednesday.

“We are not planning to throw people out, but the prime minister should read this and recognise the problems . . . the majority of his tenants were on an average household income of about £17,000 a year. “People are already living hand to mouth . . . At best, if they need to wait six weeks to be paid, it will be the end of February before it comes, and by then they might have spent the money they had on feeding their families or heating their homes”.

Paragraphs from a snapshot of the letter:

Piggott said many landlords would soon refuse to take people who were on universal credit. “A lot of landlords are now saying enough is enough”.

Jeremy Corbyn said: “Will the prime minister pause universal credit so it can be fixed? Or does she think it is right to put thousands of families through Christmas in the trauma of knowing they are about to be evicted because they are in rent arrears because of universal credit?”

Mrs May replied that she wanted to “look at the issue of this particular case” but said the government wanted people to be able to manage their own budgets and expressed less than impressive hopes that the government could act next week to cut the six-week wait for payments to five.